Federal court halts alleged Growth Cave scam following FTC lawsuit

Growth Cave’s primary business model revolved around selling a program called Knowledge Business Accelerator, which was promoted through YouTube ads. Image (c) ConsumerAffairs

Consumers have lost $50 million to the scheme, the feds charge

A federal court has temporarily shut down the operations of Growth Cave, a business opportunity and credit repair scheme accused of defrauding consumers out of $50 million. The decision comes after the Federal Trade Commission (FTC) filed a lawsuit against the company and its executives, alleging deceptive practices and false income promises.

The lawsuit, filed in the U.S. District Court for the Central District of California, names Growth Cave’s founder Lucas Lee-Tyson, along with Osmany Batte, also known as “Ozzie Blessed,” and Jordan Marksberry, as key figures in the scheme. The FTC claims they misled consumers into purchasing expensive programs with guarantees of earning thousands of dollars, only to leave them with empty promises and mounting debt.

​“The FTC has its eye on business opportunity schemes like this one and will take decisive action to stop them,” said Chris Mufarrige, Director of the FTC’s Bureau of Consumer Protection.

False promises, lavish lifestyles

Growth Cave’s primary business model revolved around selling a program called Knowledge Business Accelerator (KBA), which was promoted through YouTube ads. The program falsely claimed that consumers could earn between $20,000 and $50,000 in passive income by developing and selling digital education courses, the FTC said.

In promotional videos, Lee-Tyson portrayed himself as a marketing expert and self-made millionaire, while Batte claimed to have expertise in mindset coaching and hypnosis.

According to the FTC’s complaint, Lee-Tyson and Batte used videos showcasing luxury lifestyles to convince potential buyers of their programs’ success. However, the agency alleges that these lavish displays were funded by the money they took from unsuspecting consumers.

A costly investment with no returns

Consumers who expressed interest in KBA were subjected to aggressive email marketing and sales tactics, culminating in a “strategy call” where they were pressured to invest thousands of dollars in the program. Growth Cave even offered a $10,000 profit guarantee, leading many to believe their investment was safe.

However, once consumers purchased KBA, they struggled to receive the promised support and were left with generic advertising scripts requiring substantial revision. Many also faced undisclosed requirements before launching their courses, only to find that they could not generate any income.

The company also sold an “upgraded” version of KBA, called Digital Freedom Mastermind (DFM), for an additional $30,000 to $50,000, claiming it would provide a fully automated business solution. Consumers who purchased the upgrade reported that the promised services were never delivered.

The complaint also highlights another Growth Cave venture, Cashflow Consultant Academy (CCA), which falsely promised to connect participants with wealthy business owners for high-paying sales jobs. Instead, many found themselves working for other Growth Cave customers or were never placed with a client at all.

In 2023, Growth Cave launched Buffalo Bridge, a bogus credit repair service charging consumers $6,800 upfront for supposed credit repair and business loan services. Instead, the company simply signed consumers up for multiple business credit cards.

Rebranding and new schemes

Despite facing private lawsuits from defrauded consumers, the FTC alleges that Lee-Tyson and Batte continued to launch new scams under different names. In March 2024, Lee-Tyson introduced PassiveApps, an AI-powered business opportunity that followed the same deceptive blueprint as KBA—even using recycled testimonials from past schemes.Meanwhile, Batte launched ApexMind, mirroring the CCA scheme.

Consumers who have fallen victim to similar scams are encouraged to report fraud at ReportFraud.ftc.gov.


Stay informed

Sign up for The Daily Consumer

Get the latest on recalls, scams, lawsuits, and more

    By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. Unsubscribe at any time.

    Thanks for subscribing.

    You have successfully subscribed to our newsletter! Enjoy reading our tips and recommendations.